SharesVault team is meeting with many companies for getting them registered on SharesVault. Many of them are ready to come on SharesVault. No one said clear no for registration as almost every companies are looking for fund now a days – be it working capital or new project finance.

Than why SharesVault doesn’t allow them all to come on board ? Companies might have 100+ Crore turnover but does that make it qualify for SharesVault registration? Answer is No. Turnover is not as important for SharesVault as it is for company. Reason is number only doesn’t justify potential, credibility, reputation and growth of a company. Majority of companies SharesVault met doesn’t pass through SharesVault due diligence process because of hiding some financial numbers in saving taxes.

In saving taxes and bad accounting practices, companies are loosing it’s value which could be multiple of 3 – 4 or more depends on company’s growth, profit, PE multiple and EPS. Reason for such thing would be less awareness for company’s valuation. Family run businesses which are going to last forever and don’t want any exposure like public market or outside investors have such mentality of not disclosing profits.

From the company’s point of view – recession, inflation, government expenditure for company’s industry, government policies, corruption etc are crucial parameters which forces company for bad practices.

SharesVault has started advising companies in their growth stage/early stage or even when companies are partnership/proprietor firm. Good accounting practices will bring good investors for companies and also bring good growth.
It’s not all about accounting practices only, there are other parameters like – share holding pattern, CA and CS consultation, Board of Directors, advisers.

SharesVault provides advisory services for companies to be ready for public market. This takes time but in long run company’s value will be increased like anything. Like company having 100 Crore turnover has current share price of Rs.50 which is too less for such company can go up to Rs.200 or more if good accounting practice and corporate governance is followed.

SharesVault make company follow good practices for the betterment of company and indirectly investors.

SharesVault allows investor to register as HUF Karta. If investor has not registered as HUF than he/she can even apply for the same and get HUF PAN Card and bank account before registering on SharesVault.

HUF Information:
HUF or Hindu Undivided Family is defined under the Hindu Law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters. Any hindu individual male can create HUF as soon as he gets married to a hindu female. Its not necessary to have children to create HUF.

HUF Benefits:
If you have ancestral property and earning some income from this property, then it is better to transfer this asset to HUF and savetax up to exemption limit applicable to individual.
The income from property of HUF can be further invested in instruments such as shares, mutual funds, etc. and will be assessed under HUF.
In HUF there could be all the females’ members also when the husband dies and she has no sons.
HUF also enjoys wealth tax exemptions available to individuals.

HUF Consists Of:
Karta: KARTA is the father of the family who has the right to do all the things for the family and takes all the decisions on the behalf of the family.
Co-Parceners: Coparcener is the person who has the right to demand the share of the property of family if he/she wants to part away with the family with his/her share.
Member: Are the family members who dont have right to demand the share of the property.

Investment through HUF has to be through HUF Bank Account and HUF PAN Card only. Income generated by returns on share transaction can be count as HUF income which will help in saving tax.

Thus Sharesvault returns can also be helpful in decreasing tax. As it’s combine income and these asset will also get as inheritance to other family members.

As part of through due diligence, SharesVault also do valuation of the company which helps SharesVault to derive current fair market price of the company.

Valuation is a vast subject and also subject of perspective and personal opinion. Like if a mobile is of X value for person A but same can be of 2X for person B. Valuation is the process of estimating what something is worth.

There are many techniques available for company valuation. Here 3 techniques are described briefly:

1. Discounted Cash Flow
Via this method valuing a company using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values (PVs) — the sum of all future cash flows, both incoming and outgoing, is the net present value (NPV). Discounted cash flow tries to work out the value of a company today, based on projections of how much money it’s going to make in the future.The discounted cash flow analysis quantifies what money to be received in the future is worth today assuming a certain discount rate.
For more information : http://tommydog.hubpages.com/hub/Understanding-Discounted-Cash-Flow

2. Book Value
Value of total asset minus value of total liabilities. It is the total value of the company’s assets that shareholders would theoretically receive if a company were liquidated. In practice, book value is seldom used in the process of securing venture capital, although it is widely believed to be a realistic approach to measuring a small company’s net worth.

3. P/E Multiple:
P/E – Price Earning ratio
a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The financial reporting of both companies and investment research services use a basic earnings per share (EPS) figure divided into the current stock price to calculate the P/E multiple.
EPS – The portion of a company’s profit allocated to each outstanding share of common stock.
EPS = Net Profit / No. of outstanding share
so P/E ratio = Stock Price / EPS
The ratio will also vary widely among different companies and industries.
Once we derive P/E ratio, similar industries listed peer companies will be searched and relative valuation will be worked out.

At SharesVault once investor has stocks, he/she can sell it through multiple options. Investor can be one who has purchased Shares from company, other investor or employee with ESOPs.

Multiple options are :
1. Fixed Price
2. Negotiation
3. Auction

Based on investor choice, investor can post sell request for his/her Shares.1. Fixed Price:
In this method Investor keeps fixed price and buyer who will agree to the price will accept it and shares will be sold to that particular buyer.

Ex. Mr. Sharma has 10000 shares of ABC Pvt Ltd and he wants to sell on Rs.55 than he will post it and the one who agrees to buy will accept it.

2. Negotiation:
In this method Investor will post sell price but ready to negotiate if any buyer is interested in buying the share.

Ex. Mr. Sharma has 10000 shares of ABC Pvt. Ltd and he posted to sell on Rs.55. One buyer is interested to buy the shares at Rs.54 and if both agree on prices than transaction process will be initiated.

3. Auction:
In this method Investor will post floor price which is minimum he/she expects and keep the bid open for certain time. Interested buyer will post. Buyer can see bid history and even the current highest price.

Ex. Mr. Sharma has 10000 shares of ABC Pvt. Ltd and he posted to sell with floor price of Rs.54. Buyers started bidding with prices like 54.20, 55, 54.50, 55.20. At the end of auction transaction will be initiated between highest bid buyer and investor.

These many options will help investor to create interest in company’s shares and also will keep investor on SharesVault interested to buy/sell more and this will bring liquidity in Pvt. Ltd. Company shares.

SharesVault is on fast track now since Bhaumik Vasavada has joined as full time Managing Co Founder. Last weekend – (14th and 15th July,2012) SharesVault team spend their time at IIM, Ahmadabad.

Team has attended YourStory.in event – TechSparks 2012. Very fruitful Panel discussion was there on how to pitch VCs and how to scale up.

Mr. Gautam Gandhi, Head – New Business Development at Google India / US, said one beautiful quote in his speech – “My Mom used to say me – Son, Don’t do the things which you can’t tell me !!”. He also emphasize on Vision Statement of the company

Mr.Vishal Mehta, Owner of Infibeam, also interacts with entrepreneurs and gave a very good message that “Run marathon and not 100 meter race !!”

Mr.Aakash Goel from Sequoia Capital was quite impressed with SharesVault concept and shown his interest to see demo of it. Now SharesVault is pitching Sequoia for further round of talks.

Team also met Shradha Sharma, Founder of YourStory.in and decided to meet Sunday Early morning at 6:30 AM. She thought we might not come at such weird time and that on Sunday but we did !!

Roshan, Rushik and Bhaumik met Shradha at 6:30 AM and she was very amazed to see as we all had less than 5 hour sleep previous night. Discussion started for tie up with YourStory.in and it went till 2 hours. Various topics were discussed from he Times of India, CNBC experience to how Gujjus are very much possessive about their equity in company. We had verbal deal to help each other which Shradha and we both have fulfilled in less than a week by helping each other in their work areas.

Overall it was a great weekend for SharesVault and it’s team to get feedback of various people on SharesVault !!

EDI Empresario 2012 event was a very big platform for any start up company to show their concept to cream people.

SharesVault grabbed this opportunity and setup a stall and interacted with many people which include students, professors, diplomats, CEOs and entrepreneurs.

Many Questions were asked regarding our business model, concept and legality. All were answered by Bhaumik Vasavada and Ankur Patel at SharesVault stall. Many companies CEO and other entrepreneurs shown their interest to list their companies on SharesVault platform.

Experience got through this event really helped Bhaumik Vasavada , than Coordinator now one of the Co Founder, to showcase SharesVault in front of big crowd and learn many aspects of marketing and public speaking.

Bhaumik Vasavada interacted with various people and discuss SharesVault

Roshan Shah, a Canadian Citizen and a successful entrepreneur in the software engineering and social media technology sectors, is actively pursuing goals to save the world. Shah will be conferred the Star Entrepreneur of the Year award in Pune, India at the Fourth Indira India Innovation Summit in January 2011.

Roshan is the CEO and founder of Gloscon Solutions Pvt Limited, a leading Open Source company that specializes in Drupal Development, Ruby on Rails Development, 24×7 server monitoring and performance and maintenance services for high traffic Drupal and Ruby on Rails sites. Roshan has developed professional technology teams and next generation leaders known for their work ethics and high production.

Gloscon fully owns Gujarat Hosting Pvt Limited, a 24×7 Web hosting and infrastructure/application monitoring company and OpenKick Technologies Pvt Limited(the Open Source training company). He has also developed a very large venture, “Kosansh”, the medical tourism portal. The portfolio also includes “Gujarat Startups”, the entrepreneurship portal; “Citiplots”, a real estate portal, and “Galaminds” the instant website template solution and he is working on building “Gujarat Health City” – Luxurious Retirement homes, “Beautiful Gujarat” – Travel portal, “SharesVault” – Pre-IPO Deal Network and “Cheerfoolz” – Entrepreneurship in Children and “Surgeboom” – Social Media Marketing firm. Roshan is an advisor to many international startups and sits on Board of Open Educator, NY.

Roshan works directly with CEO clients as a strategic advisor and lead project manager. These high level executives, whether from the US or around the globe, typically engage Gloscon and its subsidiaries to attract customers and generate new sources of revenue. Clients are extremely loyal and powerfully endorse Roshan’s managerial style as well as his team’s technical expertise and their “perfect” client communication processes.

Roshan is regarded as a valued resource and an unfailing professional who manages expectations, projects and budgets impeccably for clients who require top-level technical services for their projects.

Before starting Gloscon Solutions Pvt Limited, Roshan spend 11 years in various roles supporting clients and companies like IBM, HP, JP Morgan, Macmillan Computer Publishing, Peerflix, Speedware, Satyam as well as Larsen and Toubro Infotech. Roshan was also a Director in NetVision Web Technologies Pvt Limited – a company providing Java Training in Gujarat, India which later went Public.

Roshan Shah holds Bachelors Degree in Computer Engineering from DDIT, Advanced Diploma in Enterprise Management from AIMA, Diploma in Business Finance from ICFAI and is an Entrepreneurship Graduate from SEEDS, Canada. He is also Sun Certified Java Programmer and a Certified Project Manager.

The front page of the Toronto Star recently stated that Roshan has an innovative software engineer’s brain for venture capitalism–and with the rapid growth of his subsidiaries, has a proven track record that combines business savvy with innovative technology solutions.

Roshan believes in building entrepreneurial talent in India. Over last 5 years, 10 of Gloscon’s employees have plunged in starting their own businesses. He is also actively involved in Unique ID implementation project for 3.5 lakh global Khadayata Community.

Rushik Shah is the CEO & MD of Alakmalak Technologies Pvt. Ltd, which deals with website development solutions, which is one of the regions’ leading firms. Mr. Rushik also owns and manages a Local Job portal of Gujarat, called Gujarat.com which is currently among the top 5 job portals in terms of database in Gujarat. A Graduate of Gujarat University in Engineering, also holds a Master degree in IT Management from Illinois Institute of Technology, USA. He is one of the few individuals who have returned back to India after completing education overseas. Looking at the immense potential India has this days to erupt as a major super power.

He also is a active member of Gujarat Startups which was founded by Mr. Roshan one of the Co-founders of Sharesvault, which revolves around setting up a base for startups in Gujarat.